Instant access savings accounts explained

In our last piece, we looked at everything you need to know about fixed-term accounts. In this article, we explore the ins and outs of instant access accounts – revealing the pros and cons, and who might benefit best from them.


What is an instant access account?


In true ‘does what it says on the tin’ style, instant access accounts offer a flexible savings option that lets you get your hands on your money whenever you want to, just like a current account. However, they typically offer a slightly higher interest rate, making them an attractive proposition if you prefer not to lock your cash deposits away for months or even years.


What are the pros and cons of an instant access account?


Though an instant access account enables you to earn a slightly higher rate of return than the typical current account, being able to withdraw your money at any time comes at the cost of the higher interest rates that are part and parcel of fixed-term or notice accounts.


Potentially both pro and con, the interest rates are also variable, so will change in line with the latest Bank of England rates. In periods of high interest rates, savers will benefit, but when the rates drop, so will your rate of return.


However, there are no fees to pay when accessing your cash, and unlike a fixed-term account, you can also deposit funds whenever you want.


If you choose to, you can close your account at any time, and move or manage your money as you see fit.


Using instant access accounts for smarter saving


Instant access accounts are ideal if you have cash deposits you would like to invest for the short term. For example, you may want to fund a family event like a wedding where cash withdrawals are required at various times to pay for different services, or in scenarios where irregular payments are frequently needed.  


Instant access also provides a safe cash fund that you can dip into in an emergency. When used together with longer-term savings accounts, they can give you the best of both worlds – cash when you need it, better interest rates, plus savings to fund long-term goals.


Saving with Flagstone


Our platform offers access to a wide range of instant access savings accounts, plus longer-term options depending on your financial goals.


You also receive £85k FSCS protection (£170k for joint accounts) for each eligible savings account used, giving extra peace of mind.


To see how we can help you grow your cash deposits and maximise your interest income, take a look at our range of instant access, notice and fixed-term accounts available via our cash deposit platform.


Open a Flagstone account today.


This article is not advice. If you would like to get advice on your savings and investments, consider speaking to Financial Adviser.



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